Mullainathan, Sendhil, 611n35
Multinational corporations, 156
Murnane, R., 632n30
Murphy, Richard, 628n56
Mutualization of European debt, 650n31
Napoleon I, 162, 417, 620n46; Civil Code of, 362–366, 613n21, 614n23
National accounting, 55–59, 92, 230, 269
“National Bloc” majority, 499–500
National Health Service (Britain), 629n12
National income: concept of, 43–45, 583n7; growth of, 50–51, 173–183, 595n20; per capita, 53, 584n13; domestic product and, 68; over the long term, 164; top decile and, 322–323
Nationalization, 138–139, 370
National savings, 149–150, 153; accumulation of wealth and, 166–170, 173; negative, 185–186, 595n18; China and, 462. See also Savings, private
National solidarity tax, 370, 615n35
National War Labor Board, 298, 308
National wealth/capital, 19, 48–49, 118–119, 123, 197, 583n8; slavery and, 162–163; in Europe vs. United States, 164–166; net foreign assets and, 191–194; desirable level of, 562–565
Natural inequalities, 85
Natural resources: as capital, 47; private appropriation of, 446; rent on, 459, 537–539, 627n44; climate change and, 567–569
Naudet, J., 621n49
Net asset positions, 49–50, 191, 194; of rich countries, 465–467, 541
Net domestic product, 43
Net foreign capital/assets, 49–50; in America, 155–156; rich countries and, 191–194, 466
Netherlands, 642n15
New Deal, views of, 549
New World. See America
Nixon, Richard, 638n33
Noah, Timothy, 640n52
Nonwage workers, 203–204
Nordhaus, William, 568, 654n52
North Africa, 62–63, 491
North America, 59–61, 64; growth in, 81, 86, 93, 95, 97, 588n10; capital in, 140. See also Canada; United States
North Iowa Community College, 447
Norwegian sovereign wealth fund, 455, 626–627n39
Obama, Barack, 310, 313, 473
Obiang, Teodorin, 446
Occupy Wall Street movement, 254
OECD (Organization for Economic Cooperation and Development) reports and statistics, 220, 267–268
Ohlsson, Henry, 614n27, 645n37
Oil prices, 6–7, 459. See also Petroleum
Oligarchic divergence, 463–465, 514, 627n49
Output. See Income and output; Per capita output growth
Paine, Thomas, 197, 644n34
Palan, Ronen, 628n56
Pamuk, Orhan, 109
Pareto, Vilfredo, theory of, 364–368, 610n19, 614nn25,30,32
Parsons, Talcott, 384, 621n55
Partnerships, 203
Pasinetti, Luigi, 231
Passeron, Jean-Claude, 486
Patrimonial capitalism, 173, 237, 473
Patrimonial society: middle class and, 260–262, 346–347, 373; metamorphoses of, 339–343; classic, 411–414
“Pay for luck,” 335
PAYGO systems, 487–490, 633n45, 648n13, 652n42, 653n50
Pension funds, 391–392, 478, 487–490, 627n47, 630n15
Per capita income, 106, 122, 590n31, 590–591n8,9
Per capita output growth, 72–74, 97, 510; stages of, 86–87; purchasing power and, 87–90; diversification of lifestyles and, 90–93; end of, 93–95; social change implications of 1 percent, 95–96; in postwar period, 96–99; bell curve of global, 99–102; inflation and, 102–103; monetary systems and, 103–109
Père Goriot (Balzac), 104, 106, 113–115, 238–240, 343, 412, 440
Perfect capital market, 214
Persuasion (Austen), 362
Petroleum: investments and, 455–460, 462, 627n49; rents, redistribution of, 537–538
Petty, William, 56, 590n1
Phelps, Edmund, 651n40
Pierson, Paul, 640n52
P90/P10 ratio, 267–269
Political economy, 3–5, 574
Poll tax, 495, 634n3
Popular Front, 286, 649n25
Population. See Demographic growth; Demographic transition
Postel-Vinay, Gilles, 18, 582n28, 599n14, 612nn4,5,9
Power laws, 367–368
Prices: inflation and, 102–103; monetary stability and, 103–104; effects of vs. volume effects, 176–177
Price system, 5–7
Primogeniture, 362–363, 365
Princeton University, 447–449
Private wealth/capital, 50–51, 57, 170–183, 541; abolition of, 10; slavery and, 46, 158–163, 593n16; defined, 46–49, 123; and public wealth/capital, 123–131, 142–145, 153–154, 183–187, 569; in Europe vs. United States, 164–166; as disposable income, 180–182; foundations and, 182–183, 451–452; world distribution of, 461–462; public debt and, 541–542, 567, 646–647n2. See also Capital, metamorphoses of; Inequality of capital ownership; Inheritance, dynamics of
Privatization, 136, 138–139, 476; capital/income ratio and, 173, 183–187
Production: wages and profits and, 39; global distribution of, 59–61; regional blocs and, 61–64; global per capita output of, 62
Production function, 216–220
Productive capital, 51–52
Productivity: knowledge and skill diffusion in, 21; slavery and, 163. See also Marginal productivity
Productivity growth: purchasing power and, 86, 88, 90; structural growth and, 228; in twenty-first century, 375; in the United States, 511
Profits: nineteenth century, 8; vs. wages, 39–40; rate of, 52, 227–230, 584n15
Progressive taxation: on capital, 1, 355, 370, 471, 473, 532, 615n35; on income, 12, 493; rise of, 153, 374, 498, 532–533; vs. regressive taxation, 255, 355, 374, 395–397; confiscatory tax rates and, 273, 505–508, 512; justification for, 444, 497, 505, 524–527, 640n51; on inheritance, 493, 497, 502–503, 505, 508, 527, 637–638n32; vs. proportional (“flat tax”), 495, 500–501; structure of inequality and, 495–496; on estates, 502–505, 507; public debt and, 543–544; Cyprus crisis and, 555–556. See also Global tax on capital
Progressive taxation, rethinking, 493–514; question of, 493–497; twentieth century evolution of, 498–502; in the Third Republic, 502–505; confiscatory tax rates and, 505–508, 512; executive salary explosion and, 508–512; top marginal rates and, 508–514, 635n14. See also Global tax on capital
Proletariat, misery of, 7–8
Property, 47, 49, 70, 569
Property rights: varying views of, 70, 483, 535–536; division of, 123; French estate tax and, 338, 374; revolutions and, 481
Property taxes, 501, 517, 520, 529, 532–533. See also Estate tax
Prost, Antoine, 591n18
Protectionism, 515–516, 523, 534
Proudhon, Pierre-Joseph, 580n7
Public debt, 114, 118, 540–570; World War I and, 106–107; public wealth and, 123–127, 127–129, 142, 153; reinforcement of private capital and, 129–131; profit from, 131–134; nineteenth vs. twentieth century, 132–133; Ricardian equivalence and, 134–135; reducing, 541–544; default on, 542–543; inflation and, 544–547; central banks and, 547–553; Cyprus crisis and, 553–556; euro and Eurozone and, 556–562, 650n32; government and capital accumulation and, 562–565; deficits debate and, 565–567, 653n47; climate change and, 567–569; transparency and, 569–570; interest rate on, 597–598n1, 598n7; mutualizing European, 650n31; slow growth and, 653n50
Public sector, organization of, 482–483
Public wealth/capital: defined, 46–49, 123; privatization and, 46–49, 123, 183–187; public debt and, 123–135, 142, 153, 541–544; financial an
d nonfinancial, 124; historical perspective on, 126–129; assets and, 135–139, 143, 541–542; desirable level of, 562–565
Purchasing power: parity in, 64–67, 586nn26,27,28; increase in, 86–90; inheritance and, 415–416
Qatar, 537
Qian, Nancy, 17, 634n50, 646n43
Quesnay, François, 603n26
Rajan, Raghuram G., 606n32, 608n12, 639n48, 640n53
Rancière, Jacques, 655n59
Rancière, Romain, 606n32
Rastignac’s dilemma, 238–242, 379, 407–409, 412, 497
Rate of interest, 52–53, 210, 584n15, 598n10
Rate of profit, 52, 227–230, 584n14
Rate of return on capital: inequality and, 1, 23, 25–27, 84; first fundamental law of capitalism and, 52–55; average long-run, 53; determination of, 199–212; pure, 201, 205–206, 208–209, 353–355; historical perspective on, 206–208; in twenty-first century, 208–209, 375; uses of capital and, 212–213; marginal productivity of capital and, 213–215; too much capital and, 215–217, 223, 227–230; capital’s comeback and, 232–233; growth rate and, 232–233, 351, 353–361, 364–366, 431, 571–572; time preference and stability of, 258–361; inheritance and, 377–378; inflation and, 452–455; pensions and, 488–489
Rate of return on land, 53–54
Rauh, Joshua, 607n41
Rawls, John, 480, 630n21, 631n22, 652n45
Reagan, Ronald, 42, 98, 309
Real estate: urban, 6, 197–198; as capital/assets, 48, 55, 122, 164, 179, 210, 598n11; return on, 53–54, 626n28; pricing of, 57–58, 144–145, 149–150, 171–173, 176, 187–188, 191; rental value of, 209; ownership of by centile, 260; size effects and, 454; taxes, 501, 517
Recession (2008–2009), 472–474, 553–554
“Reconstruction capitalism,” 397
Redemption fund proposal, 544, 559, 647n9, 649n27
Redistribution: inflation and, 133–134, 544–547; social state and, 479–481; of petroleum rents, 537–538; through immigration, 538–539; central banks and, 547–553; United States and, 638n33
Regional blocs, 61–64
Regressive taxation, 255, 355, 374, 495–497
Regulation: transparency and, 519; global tax on capital and, 534–536; of central banks, 548, 552–553, 557–558
Renault, Louis, 137
Renault Company, 137, 139
Rent control, 149, 153
Rentiers: society of, 264, 276–278, 293, 370, 372–373; fall of, 274, 369; basic arithmetic of, 410–411; petits, 418–421; as enemy of democracy, 422–424
Rent(s): land, 5–6, 39, 53–54, 56; capital and, 113, 115–116; meaning of, 422–424; on natural resources, 459, 537–539, 627n44
Rent-seeking, 115–116
Replacement incomes, 477–479, 602n9
Residence and taxation, 562
Residential capital, 48, 51–52
Retail service sector, 91
Retained earnings, 176–178
Retirement: pension funds and, 391–392, 478, 627n47; future of, 487–490, 633n47
Retirement, life-cycle theory and, 384, 391–392
Return on capital. See Rate of return on capital; Rate of return on land
Revell, J., 591n19
Rey, Hélène, 597n31
“Rhenish capitalism,” 140–146
Ricardo, David, 5–6, 9, 579n1, 580n8, 591n15; Ricardian equivalence and, 134–135
Rights-based approach, 479–481
Rignano, Eugenio, 637n29
“Rising human capital hypothesis,” 21–22
Risk, 115–116, 431
Ritschl, Albrecht, 647n10
Robinson, James A., 624n20, 639nn45,48
Robinson, Joan, 231
Rodrik, Dani, 651n35
Roemer, John, 631n23
Roine, Jesper, 18, 344, 614n27, 628n58
Romer, Paul M., 586n35
Roosevelt, Franklin D., 153, 286, 472–473, 506–507
Rosanvallon, Pierre, 588n8, 614n24, 635n13
Rosen, Harvey S., 632n31
Rosenthal, Jean-Laurent, 18, 599n14, 612nn4,5, 646n44
Roy, René, 591n19
Russia, 186–187, 554
Russia-Ukraine bloc, 62–63, 585n22
Saez, Emmanuel, 17, 511, 581nn22,23, 606nn33,36, 607nn38,39, 613n32, 634n4, 638n38, 642n19, 643n21
Samuelson, Paul, 137, 218, 231–232
Sandström, Susanna, 623n8
Sartre, Jean-Paul, 655n2
Saudi Arabia, 538
Saudi Arabia sovereign wealth fund, 457–458
Savings, private: rate of, 26, 174–175, 177, 186; components of, 176–178; durable goods and, 179–180; middle class and, 260; concentration of wealth and, 351–353, 377–378, 617n18; retirement and, 384, 391–392; in twenty-first century, 400–401. See also National savings
Say, Jean-Baptiste, 9, 579n2
Scandinavian countries: income inequality in, 246–250, 253, 255–256; Gini coefficient and, 266
Scarcity principle, 5–7, 9, 27
Scheve, Kenneth, 637n26
Schinke, Christoph, 622n59
Schlozman, K., 640n52
Schmidt, Helmut, 652n43
Schueller, Eugène, 440
Schumpeter, Joseph, 137
Schwartz, Anna, 548–549
Sciences Po, 486–487, 632n37, 633n40
Séaillès, M. J., 612n7
Seligman, Edwin, 635n13
Sen, Amartya, 480, 603n25
Sense and Sensibility (Austen), 113, 362, 413–414
Service sector, 88, 90–93
Shareholder model, 145–146
Shares of Upper Income Groups in Income and Saving (Kuznets), 11–13
Shocks: inequality and, 8, 13–15, 25, 271–276, 293–294, 323; growth and, 107, 109; capital and, 117, 121, 139, 141, 146–150, 152–153, 284; capital/income ratio and, 164, 167, 168, 170, 191, 206, 368–369; short-term, 244–245, 311; concentration of wealth and, 346, 349, 350, 356; family fortunes and, 362, 364, 369; inheritance flows and, 380–381, 396–398
Shorrocks, Anthony, 623n8
Short-termism, 214
Siegfried, André, 615n35
Simiand, François, 582n34, 600n28
Size effects of assets, 453–454
Skills: and knowledge diffusion, 21, 71, 313; supply and demand of, 305–308; inequality and, 419–420
Slavery, capital and, 46, 158–163, 593n16
Slim, Carlos, 444–445, 624nn14,20
Slow growth: inequality and, 25–27, 42, 84, 166, 351–358; return to, 72–74, 84, 93–95, 232–233; beyond bubbles, 173–183; inheritance and, 378, 400, 411; public debt and, 653n50
Smith, Adam, 9, 579nn1,2, 654n56
Social insurance contributions, 494–495, 496, 641n10
Socialism, capital and, 531
Socialist movements, 8
Social justice: democracy and, 26, 424, 571; meaning of, 31, 480; inequality and, 241, 287, 310, 350, 417, 537
Social mobility: growth and, 84–85; education and, 484–487
Social norms, executive compensation and, 332–335
Social ownership, 145–146
Social scientists, 574–575
Social spending, 477–479, 481–483, 629n14; education and, 484–487; retirement and, 487–490
Social state, 471–492, 629n9; crisis of 2008 and, 472–474; growth of, 474–479; modern redistribution and, 479–481; modernizing of, 481–483; education and, 484–487; retirement and, 487–490; in poor and emerging countries, 490–492; US view of, 549
Social tables, 269–270, 603n26
Sole proprietorships, 203
Solidarity tax on wealth. See France, wealth tax in
Solow, Robert, 11, 15, 231�
�232, 580n10, 586n35
Soltow, Lee, 347
Song, Jae, 607n38
Sotura, Aurélie, 628n51
South Africa, 161, 326–328, 330; Marikana tragedy in, 39–40, 68, 583n2
South America. See Latin America
South Asia, 491
Sovereign wealth funds, 455–460
Soviet Union, 531–532, 565, 637n27, 652n44
Spain, wealth tax in, 533, 645n39
Spanish bubble, 193, 596n27, 597n30
“Specific investments” argument, 312
Stagflation, 134, 138, 557
Stakeholder model, 145–146, 312
Stamp, J. C., 612n7
Stantcheva, Stefanie, 511
Stasavage, David, 637n26
State, economic role of, 136, 180–181, 474, 476
State, social. See Social state
State interventionism, 98–99, 136–137, 473–474
Stern, Nicholas, 567–569, 654n52
Sterner, Thomas, 654n52
Stiglitz, Joseph E., 603n25, 605n25
Stock: capital as, 50; in postwar period, 149–150, 153
Stock market: capitalization of corporations and, 49, 54; Great Depression and, 150; prices, 171–173, 187–191
Stone, Richard, 585n19
Structural growth, 228
Structures of inequality. See Inequality, structures of
Strutt, H. C., 612n7
Sub-Saharan Africa, 62–64, 86, 491, 588n9
Substitution, elasticity of, 216–224, 600n32
Superentrepreneurs, 607n43
Supermanagers, 265, 291, 302–303; inequality of labor income and, 315–321, 333–335; meritocratic beliefs and, 417
Supersalaries, rise of, 298–300
Supply and demand: extreme changes in prices and, 6–7, 579n3; convergence and, 21; of skills, 305–308
Suwa-Eisenmann, Akiko, 612nn4,9
Sweden, 344–345, 346–347, 475–476, 498, 614n27
Sylla, R., 613n16
Taxation, 12, 493–495; as source of data, 12, 16–18; on capital, 208, 355–356, 370, 373, 464, 471, 494, 525–527, 652n43; progressive vs. regressive, 255, 355, 374, 495–497; on wealth, 424, 524, 527–530; confiscatory tax rates and, 473, 505–508, 512; relative to national income, 474–476; transparency and, 481; on inheritances, 493, 502–503, 505, 508, 527, 637–638n32; on consumption (“indirect”), 494, 496, 651n37; social insurance contributions and, 494–495, 496, 641n10; progressive vs. proportional (“flat tax”), 495, 500–501; categorical or schedular, 501; on property, 501, 517, 520, 529, 532–533; on earned and unearned income, 507–508; top marginal rates of, 508–514; defining norms through, 520; public debt and, 541–542; on Eurozone corporate profits, 560–561; residence and, 562. See also Competition, fiscal; Estate tax; Global tax on capital; Income tax; Progressive taxation